Finance minister Nirmala Sitharaman, in her ninth Budget speech today, announced a set of initiatives aimed at strengthening India’s capital goods manufacturing capabilities and deepening the domestic industrial base. The FM said that central public sector enterprises will establish high-tech tool rooms at two locations. These facilities will operate as digitally enabled, automatic service bureaus and focus on local design, prototyping and large-scale manufacturing of high-precision components with the aim of reducing costs and import dependence for capital goods manufacturers. Sitharaman also proposed a scheme to strengthen domestic manufacturing of high-value and technologically-advanced construction and infrastructure equipment (CIE). “This can range from lifts in a multi-story apartment, fire-fighting equipment, large and small, to tunnel-boring equipment for building metros and high-altitude roads,” she added. In addition, she announced a dedicated scheme for container manufacturing, with an outlay of INR 10,000 Cr over a five-year period, as part of efforts to strengthen logistics, exports and supply chain resilience. The announcements were part of the Budget’s broader push on manufacturing. The FM also said that the government will increase the outlay for the Electronics Component Manufacturing Scheme (ECMS) to INR 40,000 Cr from INR 22,919 Cr earlier. Launched in April 2025 and approved… Read MoreInc42 Media
